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   US Trustee Handbook

CHAPTER 1

INTRODUCTION

CHAPTER 1 – INTRODUCTION

A. PURPOSE
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   The United States Trustee appoints and supervises standing trustees and monitors and supervises cases under chapter 13 of title 11 of the United
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   le 11 of the United States Code. 28 U.S.C. § 586(b). The Handbook, issued as part of our duties under 28 U.S.C. § 586, establishes or clarifies the
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   es or clarifies the position of the United States Trustee Program (Program) on the duties owed by a standing trustee to the debtors, creditors, other
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   s, creditors, other parties in interest, and the United States Trustee. The Handbook does not present a full and complete statement of the law; it
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   ment of the law; it should not be used as a substitute for legal research and analysis. The standing trustee must be familiar with relevant provisions
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   relevant provisions of the Bankruptcy Code, Federal Rules of Bankruptcy Procedure (Rules), any local bankruptcy rules, and case law. 11 U.S.C. § 321,
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   w. 11 U.S.C. § 321, 28 U.S.C. § 586, 28 C.F.R. § 58.6(a)(3). Standing trustees are encouraged to follow Practice Tips identified in this Handbook but
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   n this Handbook but these are not considered mandatory.
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   Nothing in this Handbook should be construed to excuse the standing trustee from complying with all duties imposed by the Bankruptcy Code and Rules,
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   tcy Code and Rules, local rules, and orders of the court. The standing trustee should notify the United States Trustee whenever the provision of the
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   he provision of the Handbook conflicts with the local rules or orders of the court. The standing trustee is accountable for all duties set forth in
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   duties set forth in this Handbook, but need not personally perform any duty unless otherwise indicated. All statutory references in this Handbook
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   es in this Handbook refer to the Bankruptcy Code, 11 U.S.C. § 101 et seq., unless otherwise indicated.
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   This Handbook does not create additional rights against the standing trustee or United States Trustee in favor of other parties.
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   B. ROLE OF THE UNITED STATES TRUSTEE
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   The Bankruptcy Reform Act of 1978 removed the bankruptcy judge from the responsibilities for daytoday administration of cases. Debtors, creditors, and
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   ors, creditors, and third parties with adverse interests to the trustee were concerned that the court, which previously appointed and supervised the
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   and supervised the trustee, would not impartially adjudicate their rights as adversaries of that trustee. To address these concerns, judicial and
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   cerns, judicial and administrative functions within the bankruptcy system were bifurcated.
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   Many administrative functions formerly performed by the court were placed within the Department of Justice through the creation of the Program. Among
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   the Program. Among the administrative functions assigned to the United States Trustee were the appointment and supervision of chapter 13 trustees./
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   apter 13 trustees./ This Handbook is issued under the authority of the Program’s enabling statutes.
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   C. STATUTORY DUTIES OF A STANDING TRUSTEE
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   The standing trustee has a fiduciary responsibility to the bankruptcy estate. The standing trustee is more than a mere disbursing agent. The standing
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   agent. The standing trustee must be personally involved in the trustee operation. If the standing trustee is or becomes unable to perform the duties
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   perform the duties and responsibilities of a standing trustee, the standing trustee must immediately advise the United States Trustee. 28 U.S.C. §
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   rustee. 28 U.S.C. § 586(b), 28 C.F.R. § 58.4(b) referencing 28 C.F.R. § 58.3(b).
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   Although this Handbook is not intended to be a complete statutory reference, the standing trustee’s primary statutory duties are set forth in 11
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   are set forth in 11 U.S.C. § 1302, which incorporates by reference some of the duties of chapter 7 trustees found in 11 U.S.C. § 704. These duties
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   § 704. These duties include, but are not limited to, the following:
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   Copyright
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